A new report by HCLTech and MIT Technology Review Insights has uncovered a stark reality for businesses attempting to integrate responsible AI into their operations. While 87% of senior business leaders recognise responsible AI as essential, 85% admit they are ill-prepared to implement it. This disconnect highlights the urgent need for organisations to move beyond awareness and take meaningful action to address AI-related risks.
The study, released at the World Economic Forum’s Annual Meeting in Davos, underscores the growing imperative for companies to develop AI governance frameworks that balance innovation with ethical considerations. It identifies five key obstacles preventing businesses from effectively adopting responsible AI: the complexity of implementation, lack of expertise, difficulties in managing operational risks, regulatory compliance challenges and inadequate resource allocation.
Despite these hurdles, many executives signal a shift in priorities, with plans to ramp up investment in responsible AI within the next year. The report, titled Implementing Responsible AI in the Generative AI Age, provides insight into how companies are navigating the complexities of AI integration and offers recommendations for bridging the gap between ambition and execution.
Governance Lags Behind AI Expansion
Artificial intelligence is rapidly evolving from proof-of-concept initiatives to widespread deployment across multiple business functions. Generative AI and AI-driven automation are already being integrated into customer service, software development and marketing. However, as organisations rush to scale their AI capabilities, ethical considerations, risk management and compliance remain secondary concerns for many.
Agentic AI, which operates autonomously with minimal human intervention, is gaining traction, particularly in lower-risk environments such as IT operations. Yet the report highlights a significant lack of preparedness in addressing critical challenges such as user adoption, change management and algorithmic bias. While half of the executives surveyed feel confident in managing operational risks, fewer than a quarter believe they are adequately equipped to handle these broader issues.
Steven Hall, President of Europe and Chief AI Officer at ISG, notes that while business leaders are aware of AI’s transformative potential, governance and investment in responsible AI remain insufficient. “Everybody understands how transformative AI is going to be and wants strong governance, but the operating model and the funding allocated to responsible AI are well below where they need to be given its criticality to the organisation,” he said.
Building the Foundations for Responsible AI
The report advocates for a structured, proactive approach to responsible AI implementation. According to Vijay Guntur, Chief Technology Officer and Head of Ecosystems at HCLTech, AI can drive positive change across industries but must be built on a foundation of trust. “AI can be a tremendous force of positive change in businesses and society at large, but its full potential can only be realized when it can be trusted,” he said.
To bridge the readiness gap, the report recommends that enterprises adopt a clear and comprehensive responsible AI framework. This should include guidelines on ethics, safety, security, sustainability and regulatory compliance. Companies are also encouraged to leverage partnerships within their technology ecosystems to pilot and refine AI best practices.
Establishing dedicated AI governance teams is another crucial step. HCLTech recently formed an Office of Responsible AI and Governance, led by subject matter experts in AI ethics, compliance and risk management. This initiative aims to embed responsible AI principles into business operations through co-innovation, consulting capabilities and industry partnerships.
As regulatory scrutiny intensifies and consumer expectations around AI transparency grow, businesses that fail to integrate responsible AI practices risk losing trust, facing legal challenges and encountering operational setbacks. With AI poised to reshape industries at an unprecedented pace, organisations must act decisively to close the gap between aspiration and execution.
